Correlation Between Mistras and Knightscope
Can any of the company-specific risk be diversified away by investing in both Mistras and Knightscope at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mistras and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mistras Group and Knightscope, you can compare the effects of market volatilities on Mistras and Knightscope and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mistras with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mistras and Knightscope.
Diversification Opportunities for Mistras and Knightscope
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mistras and Knightscope is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mistras Group and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and Mistras is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mistras Group are associated (or correlated) with Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Mistras i.e., Mistras and Knightscope go up and down completely randomly.
Pair Corralation between Mistras and Knightscope
Allowing for the 90-day total investment horizon Mistras Group is expected to generate 0.19 times more return on investment than Knightscope. However, Mistras Group is 5.19 times less risky than Knightscope. It trades about 0.39 of its potential returns per unit of risk. Knightscope is currently generating about -0.09 per unit of risk. If you would invest 888.00 in Mistras Group on November 3, 2024 and sell it today you would earn a total of 104.00 from holding Mistras Group or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mistras Group vs. Knightscope
Performance |
| Timeline |
| Mistras Group |
| Knightscope |
Mistras and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mistras and Knightscope
The main advantage of trading using opposite Mistras and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mistras position performs unexpectedly, Knightscope can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Knightscope will offset losses from the drop in Knightscope's long position.| Mistras vs. Team Inc | Mistras vs. Thermon Group Holdings | Mistras vs. MRC Global | Mistras vs. Vishay Precision Group |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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